Tax evasion is a federal crime that can encompass both legal and illegal activities. According to the Internal Revenue Service, any person who attempts to defeat or evade any tax by the federal government may face penalties of up to five years in jail, a fine of up to $250,000 or both. However, this crime can be charged for more than just failing to file income taxes.
Tax evasion also encompasses filing false claims, failing to pay payroll taxes, failing to declare income that is in an offshore account and more. Money that is made from activities that are illegal can't be declared as income on tax returns. For example, money obtained by fraud, embezzlement, illegal gambling, public corruption or bribery can't be reported as income. While this is no surprise to those who have made money in one of these or other illegal ways, tax evasion penalties, such as prison time or fines, can be imposed upon conviction of such a charge.
When facing tax evasion and other tax crimes, you need an attorney who has substantial experience in defending against such charges. Because the penalties of these crimes can be so high, you will need an attorney who is familiar with the way federal crimes are prosecuted.
We want to help you through this difficult time. Even if you are simply under investigation and have not been charged, you should have legal representation by your side. Whatever you say to police can be used against you, even if an arrest has not been made. You can learn more about tax evasion and the possible penalties on our tax crimes webpage.